A payment dispute, also known as a chargeback, occurs when a cardholder or accountholder questions a payment with their card issuer or bank. It is a formal process initiated by the customer that can have significant financial consequences for your business.
When a dispute is filed, the card network or payment network immediately reverses the payment, pulling the funds—plus a dispute fee—from your account while the case is reviewed. This guide explains how Dappr notifies you of disputes and walks you through the process of responding.
How the dispute process works
When a customer disputes a charge, their bank creates a formal claim that is passed through the payment network (like Visa or Mastercard) to Dappr and our payment partners. This process triggers several immediate actions:
Payment Reversal: The disputed amount is instantly withdrawn from your Dappr Sales balance.
Dispute Fee: A non-refundable $15 dispute fee is also debited from your balance.
Notification: Dappr will notify your company's legal representative via email and create a notification in the Dappr dashboard. The active dispute will also be highlighted on your Sales Overview page.
It is crucial to respond to a dispute before the deadline set by the card network, which is typically between 7 and 21 days.
How to view and respond to a dispute
You can access the details of a dispute in two ways:
From the Sales > Overview page, click the View and respond button in the dispute notification banner.
Navigate to Sales > Billing > Payments, find the disputed payment in the list, and click on it.
This will take you to the payment's dedicated page, which will now include a section with details about the dispute, including the reason provided by the customer's bank (e.g., "Fraudulent," "Product not received").
You have two options for how to proceed: Accept the dispute or Counter it.
Accepting a dispute
Accepting a dispute is equivalent to agreeing with the customer's claim and treating the chargeback as a final, irreversible refund. You should choose this option if you believe the customer's claim is valid or if you do not have sufficient evidence to contest it.
To accept a dispute, simply click the Accept dispute button and confirm your choice in the pop-up. The case will be closed, and the funds will be permanently returned to the customer.
Countering a dispute
If you believe the charge was legitimate and you have evidence to support your position, you can counter the dispute. This involves submitting evidence to the card network, which will then make a final decision.
Click the Counter dispute button. A pop-up form will appear.
Complete the evidence form thoroughly. Dappr guides you through providing the information that card issuers find most compelling. It is highly recommended that you provide as much detail as possible in all fields, even those marked as optional. Strong evidence is the key to winning a dispute. This may include:
Customer information (name, email, billing address).
Proof of service or delivery (e.g., shipping tracking numbers, signed contracts, email correspondence with the customer).
A copy of your terms of service or refund policy that the customer agreed to.
Once you have filled out the form and uploaded your evidence, click Submit evidence.
Dappr will format your evidence and submit it to the card network on your behalf. The review process can be lengthy, often taking several weeks and sometimes up to three months to resolve.
Important considerations
ACH Direct Debit Disputes: Disputes for payments made via ACH Direct Debit are handled differently. Due to network rules, these disputes cannot be countered and are always automatically resolved in the customer's favor.
Financial Impact: The disputed amount and the $15 fee are withdrawn from your sales balance immediately. If this results in a negative balance, Dappr will attempt to cover it by withdrawing funds from your Dappr Financial Account. If you win the dispute, the original payment amount will be returned to your sales balance. However, the $15 dispute fee is never refundable, even if you win the case.